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My Rare was a level 3 also, I found it after an hour by the lake south of the Vector Coil. Not sure if it means anything, but I figured it was worth noting.
It's 8:45pm server time and after looking around WS all day, I've just started to find them around Everlook in the place of the RoboChicks and Rabid Nut Varmits. Not sure if they only come out at night, but they are around, and pop up at little farther out than the RCs and RNVs too.
While it's a cool looking pet, it's absolutely useless for battling since it's only strong against Aquatic which it's also the weakest against.
Still, it's a great looking pet.